DEPARTMENTAL REQUEST FOR INFORMATION DECLINED

Chronicle (Levin), 5 November 1947, Page 6

DEPARTMENTAL REQUEST FOR INFORMATION DECLINED

i w GREYXIOUTH, Xov. 4. The right of Land Saies Committees to demand froni a newly fornied company, proposing to purchase a business, a declaration of the sliareliolders ' purpose for whicli it was formed, and an assurance that it's existence was not for the purpose of evading the Land Saies Act, was ehallenged for the lirst time in Xew Zealand at a sitting of the Westland Lancl Saies Committee at Greymouth yesterday. Mr. C. R. XIcGinley, counsel for F. XI. Lewis, who applied for permission 4o sell the Recreation Hotei to Recreation Hotel (Greymouth), Ltd., for £(3000, refused to recognise the committee 's leghl autliority to direct that a declaration be liled. He stated that, though the practice has become general throughout Xew Zealand, following a decision by the Dunedin committee, provision for this practice was not embodied in the Act. He claimed that there was "too much usurpation of individual rights by the State now. ' ' He pointed out that, under the present Act, it was not obligatory for a purchaser. to make a declaration, and submitted that this could be brouglit about oniv by Parliament, and not by Government departments. ; The Crown representatjve pointed out that it' was in saies t'd compauies tliat evasious of the Act occurred, in that saies of shares could be made for an aggregiite sum beyon^l the true value of the property. > "This is a case where the purchasmg company shoukl be asked to lile a j declaration as required,": he added, after the chai rmah of thb committee had admitted the validity of Mr. XIcGinley 's submissions. The comhiittee adjourned the case to consider which of two courses to accept — either to grant the apylication and allow the Crown to appeal, or to refer the niatter to the Land Saies Court. for a ruling. . . . .